04 July 2007, 18:01 PM

  • Interest rates are widely tipped to rise again this week, as the Bank of England's Monetary Policy Committee (MPC) starts its monthly rate-setting meeting.

The MPC will announce its decision tomorrow (5th July). Minutes from last month’s meeting revealed that four members of the nine-strong committee, including Bank of England governor Mervyn King, voted in favour of a rise in rates.

Rates are currently 5.5% but Mr King has already warned that they will rise before the end of the year, unless consumer and company spending slows down, the BBC reported.

Meanwhile, consumer confidence fell in June for the first time in six months amid fears of a rate rise, according to a survey by the Nationwide Building Society.